Coal miner New Hope committed to take up A$105-million of a minimum A$160-million institutional placement equity raising launched by coal junior Malabar Resources on Wednesday.
The investment will increase New Hope’s shareholding in Malabar to about 23%.
Malabar will issue about 88.9-million shares at A$1.80 a share to raise proceeds for its Maxwell project, which is located in the Hunter Valley of New South Wales.
The Maxwell underground mine will comprise of a 300 m longwall, producing about 120-million tonnes of high-quality coal over a 25-year mine life. In the near term, the longwall will be supplemented by the bord-and-pillar mine, producing about six-million tonnes over ten years.